DHL Logistic Case Study Example
Introduction of DHL Logistic
Larry HillBlom, Adrian Dsley, and Robert Lynn founded DHL in 1969. DHL Logistics had three owners till it became a one-sided subsidiary in the year 2002. Currently, Logistic Operates over 220 countries, making it the largest freight carrier all over the world. Effective communication and in-house consultancy helped it to expand its global business.
DHL Logistics established itself as the global leader in the Logistics industry. DHL invested in Solution development and trend research. It formed the DHL innovation center where the stakeholders and Consumers can connect with the DHL experts. Some of the successful projects taken over by the DHL innovation Centre include Resilience360 and Smart sensor.
With a brand evaluation of 5708 million dollars, DHL Logistics ranks among 77 top International brands.
SWOT Analysis of DHL Logistics
Strength of DHL Logistics
- Presence of Distribution network: DHL logistics has outlets in almost all the States, which remain connected by a strong Distribution network. it ensures that the customers can avail of services and/or products on time.
- Low-cost structure: DHL logistics follows a low-cost strategy that allows it to manufacture and sell its product at a low price.
- DHL logistics has a strong connection with its dealers that not only provide them with supplies but also focus on training and development of the Products.
- With constitutive profits made over the last five years, DHL Logistics gained a strong financial position. they can use it to Finance future project expenses.
- DHL Logistics successfully generated positive income on Expenses that it incurred in the pst.
Weaknesses of DHL Logistics
DHL logistics is investing more than average in the research and development department, but it is quite less than the amount invested by its competitors that gained profits from their innovative products.
The time it takes in selling and manufacturing the products is more than the industry average. It means that DHL builds up inventory adding unnecessary costs.
The majority of the property that is owned by logistics is mostly rented rather than owned. It implies that the brand has to pay a lot more apart from the operational costs.
The current ratio indicates that The brand’s ability to meet short-term objectives is less than that of the industry average. It means that the company is more likely to face liquidity problems in the future.
DHL Logistics has more liabilities in comparison to the assets. it is more likely to create liquidity problems in the future.
The company lacks financial planning in terms of cash flow. As a consequence, DHL logistics need to borrow unnecessarily in times of inadequate cash flows.
Opportunities of DHL Logistics
- With the passage of time the number of internet users increased considerably. It means that there is an opportunity for the brand to expand its business online, by engaging with users online.
- There has been a new trend and growth in the E-commerce industry. r it means that lots of people are making online purchases. DHL logistics can boost its sale by opening up online stores and gaining profit from online stores.
- Technology comes with added benefits in all aspects of the business. Operations can also get automated online. Enables businesses to collect customer data and gain valuable market Insights.
- The Transport industry has been flourishing for the past several years. It has growth potential in the future as well. Reduce the cost of transportation, which proves to be beneficial for the DHL Logistics as it would lower the overall expenses.
- Globalization does not restrict the DHL logistics to its own country. it can expand its business to foreign lands. it can enter the foreign markets and get benefit from the opportunities that lie in the foreign market.
- Latest Technological advancements or innovations by its competitors in the industry pose threats to DHL Logistics. It is because the customers attracted to the new technology can be lost out to the competitors, adversely affecting overall market share of the company.
- Competition became more intense with time, which exerted a downward pressure on prices. Revenue generated by DHL will likely reduce if it adjusts to fluctuations in price. Otherwise, it will face a loss in market share.
- Exchange rate keeps on changing from time to time. It creates a negative impact on DHL that has international clients, but local suppliers.
Weighted SWOT Analysis of DHL Logistics
Weighted analysis of DHL Logistics can be conducted that assigns weightage to each of the weaknesses and strengths mentioned in the SWOT Analysis. It allows managers to concentrate on the crucial factors, and give less priority to the less important factors.
Pricing is a factor that helps people to settle on choices when sending parcels. Emerging from an e-commerce country, pricing favors DHL logistics. Competition between logistic organizations to be the best delivery partner to improve reliability and lower down prices.
The world seems to gain from better pricing of logistic enterprises. Individuals and small companies, all are happy with the pricing of the enterprises.
DHL logistics collaborated with several government entities to work for the welfare of the nations. The enterprise gained popularity through these events. It formed an important segment of the Make In India Campaign
DHL Logistics is known for being a reputed international delivery partner. Individuals and enterprises have been making the best use of the delivery services for sending letters and gifts to customers and close ones. Logistics helped start-up companies to send with the most sought-after infrastructure, making their online dreams come true.
SWOT stands for Strength, Weakness, Opportunity, and Threat. SWOT Analysis helps you to analyze the four key aspects of your business. Opportunity helps you to maximize the benefits of the available resources. It helps you to reduce chances of failure by understanding your weaknesses, and getting over things that pose threat to growth of business. You can take help of this model to develop strategy, so that you can successfully compete in the market.